Whenever currency is deposited into a commercial bank, cash goes out of circulation and, as a result, the supply of money is reduced. 1. True
2. False

The answer is false

Explanation:

The money supply is the total value of money available in an economy at a given point in time.

M1 is the money supply that is composed of physical currency and coin, demand deposits etc. Therefore, money deposited into a commercial

bank adds and does not reduce the money in circulation.

The answer to the question is false.

answer; be sure that the information on file is correct;

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